Belarus Crafts Crypto Safety Net Amid Investor Fallout and Global Ambitions

Belarus President Aleksandr Lukashenko has intensified efforts to establish a robust regulatory framework for the country’s rapidly evolving cryptocurrency market, calling for a transparent and controlled environment to protect investors and ensure financial stability. During a government conference on September 5, 2025, Lukashenko emphasized the urgency of implementing comprehensive and enforceable regulations, citing recent audit findings that revealed significant shortcomings in the sector. A state audit conducted by the State Control Committee found that nearly half of the funds invested by Belarusian citizens in foreign crypto platforms did not return, and 1,600 individuals had suffered losses from risky investments. Three of the six token-issuing companies in the country had also collapsed, according to the report.

Lukashenko instructed government officials to finalize a regulatory framework within one month, underscoring the need for clear rules governing digital assets and the roles of state agencies. He reiterated his earlier 2023 decree calling for a national crypto framework and criticized the government for allowing the industry to grow without sufficient oversight. The president emphasized the importance of investor protection, stating that the state should not tolerate any gaps that could be exploited by criminals or unscrupulous actors. This push for regulation follows the introduction of the Hi-Tech Park special economic zone, which has served as the legal and operational hub for 18 cryptocurrency companies since 2017, offering them tax benefits and legal protections until 2049.

In a strategic move to strengthen oversight, Lukashenko has also approved the development of an experimental crypto bank, a first-of-its-kind initiative in the global landscape. This institution, which will operate as a non-bank financial organization under strict government supervision, is intended to serve as a testing ground for crypto banking while safeguarding local investors from potential losses. It will focus on attracting foreign investors and processing cryptocurrency-only transactions, distinguishing it from traditional banks that accept local currency deposits. The model is expected to align with Belarus’s broader goal of using its surplus energy to expand cryptocurrency mining operations, which Lukashenko has described as a viable use of the country’s excess electricity.

The government has also initiated plans for a Central Bank Digital Currency (CBDC), known as the digital ruble, which is set to launch in late 2026. The digital ruble will initially be used for government services, social payments, and retail transactions, with long-term plans to integrate it into international trade systems, particularly within the BRICS and Eurasian Economic Union. Unlike decentralized cryptocurrencies, the digital ruble will remain under complete state control, reinforcing the government’s stance on maintaining economic independence and mitigating risks from foreign digital currencies.

Lukashenko’s regulatory agenda reflects a broader effort to balance innovation with financial security. While Belarus has been a pioneer in crypto-friendly legislation, recent challenges have highlighted the need for stronger safeguards. The government has already taken steps to block fraudulent activities since 2018 and continues to refine its oversight strategies in collaboration with the National Bank and other agencies. The Communications Minister, Kirill Zalessky, noted that the evolving nature of the cryptocurrency sector requires constant adaptation of regulations to address emerging risks and prevent illegal operations.

As the country moves forward, the proposed regulatory changes are expected to significantly increase state scrutiny over the crypto industry. These developments underscore Belarus’s commitment to maintaining its position as a global leader in digital asset innovation while ensuring that its market remains stable and secure for both domestic and international participants.

Source: [1] Belarus President Lukashenko Makes Another Crypto Push (https://cointelegraph.com/news/belarus-president-lukashenko-makes-another-crypto-push) [2] Belarus President Pushes for Stronger Crypto Rules (https://bravenewcoin.com/insights/belarus-president-pushes-for-stronger-crypto-rules) [3] Belarus President calls for tightened crypto regulation to ... (https://cryptoslate.com/belarus-president-calls-for-tightened-crypto-regulation-to-protect-investors-and-economy/)